NZD/USD rebounds in Asia, taps 0.7000

The New Zealand dollar made a solid comeback versus its American counterpart in the Asian trading this Wednesday, lifting NZD/USD to session highs just ahead of 0.70 handle.  

Currently, the NZD/USD pair jumps back on the bids to trade around 0.6996/98 band, reversing quickly from a dip to 0.6971, daily lows. The overnight rebound in commodities’ prices coupled with higher Asian equities, provide some stability to markets and boost the demand for the higher-yielding currency NZD.

Meanwhile, the US dollar remains broadly higher heading into Trump’s new conference scheduled later on the day, keeping a lid on NZD/USD. Stephen Innes at MarketPulse notes, “As for President-elect Trump’s presser tonight, traders will be viewing the speech with a high level of scrutiny, as the market’s exhilaration over “Trumpenomics”. Initially, euphoria gave way to a more calculated approach to the USD as we entered year end, and that has now morphed into degree skepticism over the proposed US infrastructure spend.”

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7023 (50-DMA), above which it could extend gains to 0.7050 (psychological levels) and from there to 0.7091 (daily R2). To the downside immediate support might be located at 0.6971/70 (daily low/ 10-DMA) and from there to at 6941 (20-DMA), below which 0.6902 (daily S2) would be tested.